Buffalo Hills, Northern Alberta
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Location:
The Buffalo Hills property is located 400 kilometers northwest of Edmonton, and is the third largest district of significantly diamond-bearing kimberlites in Canada after Lac de Gras in the Northwest Territories and Fort à la Corne in Saskatchewan.
Size:
Approximately 1.1 million acres comprising 87 metallic and industrial mineral permits and one (1) exploration permit covering 41,869 acres of land within the Loon River First Nations Reserve (LRFNR).
Ownership:
Diamondex 22.5% / Shore Gold 22.5% / Encana Corporation 43% / Pure Diamonds Exploration Inc. 12%. Diamondex is the Operator of the project.
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Assets:
To date, a total of 38 kimberlites have been discovered in the region, of which 26 are diamondiferous. Pipe areas range from 1 – 47 hectares.
Overview:
In July 2007, Shore Gold and Diamondex purchased the project from Stornoway Diamonds Corporation. Pursuant to the acquisition, Shore and Diamondex each acquired a 22.5% interest in the Buffalo Hills Joint Venture, in which Encana Corporation holds a 43% interest and Pure Diamonds Exploration Inc. holds the remaining 12% interest. Diamondex and Shore can increase their combined interest to 72.5% by spending $15 million prior to April 30, 2010.
To date, 6 pipes have been mini-bulk sampled ranging between 1 and 479 tonnes. In 1997 and 1998, a cumulative 524 tonne sample collected from K14 returned an estimated diamond content of 12 carats per hundred tonnes ("cpht") with the largest diamond recovered weighing 1.3 carats. A 36 tonne sample collected from K91 in 1998 returned an estimated diamond content of 13 cpht with the largest diamond weighing 0.45 carats.
The K14, K91 and BH225 kimberlites are located within a broad corridor approximately two kilometers in length. Based on the limited existing drill data, these three kimberlites, taken together, have the potential to host significant kimberlite tonnage.
The K6 kimberlite is located approximately 10 km south of K14 and is interpreted to have a northern and a southern vent and the potential for significant tonnage. A cumulative 19.2 tonne sample collected from the northern vent in 1997 and 2002 returned an estimated diamond content of 7.2 cpht.
The K252 kimberlite has returned high grade results of 55 cpht from a 22.8 tonne sample.
Exploration 2007:
During the first quarter of 2007, and prior to the acquisition of an interest in the Buffalo Hills property by Diamondex and Shore, Stornoway Diamond Corporation took a bulk sample from the K14 and K6 kimberlites.
Results of the bulk samples are as follows:
| Batch |
Dry Metric Tonnes |
Total Stones |
Total Carats |
CPHT |
Largest Stone (ct) |
| BHH-K14-Pit 1 |
43.56 |
45 |
3.20885 |
7.37 |
0.9 |
| BHH-K14-Pit 2 |
45.22 |
70 |
3.9746 |
8.79 |
0.38 |
| BHH-K14-Pit 3 |
48.22 |
24 |
3.94695 |
8.18 |
0.71 |
| BHH-K6-Pit 1 |
231.89 |
85 |
16.2853 |
7.02 |
1.07 |
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368.89 |
224 |
27.416 |
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Exploration 2008:
The $7.0 million Exploration Program for the Buffalo Hills Project began in late February 2008. The primary goal of the program is to drill test the best kimberlite pipes (discovered to date) with sufficient density to allow for the identification of distinct kimberlite phases and key characteristics, which will permit the construction of more accurate geological models. This exploration program will provide vital information to determine which pipes, discovered to date on the Buffalo Hills Property, will warrant bulk sampling during follow-up campaigns.
To date, a total of 41 drill holes have been completed on the K14, K252 and K6 kimberlite for a combined total of 6,818 metres. All drill core has been trasnferred to the Shore logging facility in Fort a la Corne, Saskatchewan, where it is subject to quantitative geological analysis.
Forecast 2008/2009:
Further grid drilling is planned for the winter 2008/2009 season. New drilling will be carried out on the K91, BH225 and K5 kimberlites. The drill grid at K6 will be completed and additional holes will be added to the south end of the K14 grid.
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